The “Made for Germany” initiative – Germany’s economic elite wants to send a clear signal for Germany as a business location

The “Made for Germany” initiative: A comprehensive look at Germany’s largest investment offensive

The decision by Germany's economic elite to send a clear signal in support of Germany as a business location could mark a decisive turning point in the country's economic history. In this report, a neutral expert will shed light on the most important questions and answers surrounding this historic initiative.

What is behind the “Made for Germany” initiative?

The "Made for Germany" initiative is a cross-industry alliance of leading German and international companies that want to send a strong signal for Germany as a business location. The initiative was launched by prominent business leaders, including Christian Sewing, CEO of Deutsche Bank, Roland Busch, CEO of Siemens, Mathias Döpfner, CEO of Axel Springer, and Alexander Geiser, CEO of FGS Global.

This corporate alliance aims to strengthen confidence in Germany as a business location and initiate a positive turnaround. According to the initiators, the initiative should help "turn the mood in the country" and "put Germany, and thus Europe, on a growth path.".

How many companies are participating in the initiative?

By the time of the meeting at the Federal Chancellery on July 21, 2025, a total of 61 companies and investors had joined the initiative. The participating companies include both German corporations and international investors. The spectrum ranges from automotive manufacturers such as BMW, Mercedes-Benz, and Volkswagen, to technology companies like SAP and Siemens, and from energy companies like RWE to defense contractors like Rheinmetall.

International participation is evident in the involvement of US corporations such as Nvidia, as well as financial investors like BlackRock, Blackstone, KKR, and Advent. This broad range of participants underscores the international interest in Germany as a business location.

What investment amount was announced?

The scale of the announced investments is impressive: The participating companies have pledged to invest a total of €631 billion in Germany over the next three years. This sum encompasses various investment categories.

An important aspect is the composition of these investment commitments. The initiative includes both already planned and new capital investments, research and development expenditures, and commitments from international investors. According to the initiators, "a three-figure billion-euro sum, and thus a significant share of the total amount," is attributable to new investments.

Are these new investments or ones that are already planned?

This question is central to evaluating the initiative. Siemens CEO Roland Busch acknowledged that it involved "fresh capital, but also capital already pledged." However, he emphasized that this was not the decisive point: "It's certainly a positive sign when companies confirm their capital commitments and demonstrate their dedication to the location. We regularly complain about capital migrating away. Here, we are witnessing a genuine turnaround.".

This presentation shows that the initiative both confirms investments already approved and includes new commitments. The organizers argue that even the confirmation of existing plans sends an important signal in the current economic climate.

What criticisms are there of the initiative?

The initiative is not universally welcomed. Critics accuse the organizers of running it primarily as a PR campaign. FDP leader Christian Dürr questioned the initiative's substance: "A hastily staged PR event with select corporations showcasing investments they already have planned is not enough to bring about the necessary economic turnaround.".

The planned meeting is causing surprise in parts of the business community. It's being called a "PR stunt," since the billions of euros being touted by the initiative reportedly refer to investments that were already planned, not additional ones.

Marcel Fratzscher, president of the German Institute for Economic Research (DIW), advised against additional subsidies for industry and warned of potential obstacles to the transformation process. He described the summit as a "positive initiative," but added: "It is more of a confidence-building measure than a testing ground for concrete solutions.".

How do economists assess the initiative?

Economic experts have a mixed opinion. Klaus Wohlrabe of the Munich-based Ifo Institute told ZDF: "I wouldn't rule out that it could be a small step towards positive investment momentum." He added that it was generally welcome "when managers talk to the Chancellor.".

Ifo President Clemens Fuest sees the announced investments by German companies as a step in the right direction, but warns against excessive euphoria and a short-lived boom. "This is a good boost for the economy," he said, referring to government investment incentives and business spending plans. The question, he added, is whether this is truly sustainable: "Is this just a flash in the pan, financed by government debt, or will there really be a lasting increase in investment?"

Jens Boysen-Hogrefe, deputy head of economic research at the Kiel Institute for the World Economy (IfW), criticized the fact that only large corporations are represented in the Chancellor's Office. "It is crucial that the government seizes this opportunity and continues working towards improving the attractiveness of the location for investment. And especially for companies that are not currently at the table.".

What is the economic situation in Germany?

The initiative comes against the backdrop of persistent economic weakness. Germany is facing a third consecutive year without economic growth. The German Association of Chambers of Industry and Commerce (DIHK) anticipates a third year of recession in 2025, an unprecedented occurrence since the founding of the Federal Republic.

According to a DIHK survey of 23,000 companies, gross domestic product is expected to shrink by 0.5 percent in 2025. "60 percent of companies see the economic policy framework as their greatest business risk – a negative record," said DIHK Managing Director Helena Melnikov.

The Ifo Institute forecasts economic growth of only 0.3 percent for 2025, following slight contractions in gross domestic product in each of the two preceding years. A recovery to 1.5 percent is expected for 2026.

What structural problems are plaguing the German economy?

The problems facing the German economy extend beyond cyclical fluctuations. Experts have identified several structural challenges that are impacting Germany's economic competitiveness.

A key problem is excessive bureaucracy. Friedrich Merz calls for fundamental change: "We want to move towards a culture of trust, based on the assumption that citizens and businesses in Germany generally behave lawfully and take a high degree of personal responsibility." The CDU is planning "streamlining" laws to reduce documentation and reporting requirements, as well as a bureaucracy reduction program based on the "one-in-two-out" principle.

The shortage of skilled workers presents another major challenge. By 2040, Germany could be lacking 663,000 IT specialists. However, a study by the Vodafone Institute shows that increased digitalization could reduce the shortage of skilled workers by around 1.5 million by 2035.

In addition, high energy prices, dependence on exports, a lack of investment in digitalization and education, and demographic change are putting a strain on the German economy.

Xpert.Digital possesses in-depth knowledge across various industries. This allows us to develop tailored strategies precisely aligned with the requirements and challenges of your specific market segment. By continuously analyzing market trends and monitoring industry developments, we can act proactively and offer innovative solutions. The combination of experience and expertise generates added value and provides our clients with a decisive competitive advantage.

More information here:

• Benefit from Xpert.Digital's 5 areas of expertise in one package – starting from just €500/month

What does the business community demand from politicians?

The initiative sets out clear expectations for policymakers. Deutsche Bank CEO Christian Sewing urged the German government to "massively accelerate" approval processes so that the promised funds are actually invested. "If it takes years to obtain approval for a location, then that portion of the investment will naturally not be available during that period.".

Siemens CEO Roland Busch emphasized the need for measures to combat the labor shortage: “We need all hands on deck. For example, we have a large pool of people who could work but are not yet allowed to.” He added that the government must also accelerate digitalization.

Ahead of the investment summit, the financial sector is calling for clear rules. "The economy is firing up the engine – now it's up to politicians to ensure clear rules and reforms," ​​said Managing Director Heiner Herkenhoff. "Reducing bureaucracy, digital administration, and competitive taxes are key levers for sustainably promoting investment and innovation.".

What reforms is the German government planning?

The black-red coalition under Chancellor Friedrich Merz has already announced far-reaching reforms. A key component is the special fund for infrastructure and climate neutrality amounting to 500 billion euros, which is set to be invested over twelve years.

This record investment is divided into three pillars: 100 billion euros will go to the states and municipalities, another 100 billion euros are available for investments from the Climate and Transformation Fund, and the federal government can draw on 300 billion euros for additional investments.

Regarding corporate taxes, the government plans to lower the corporate tax rate for companies starting in 2028. Currently, the corporate tax rate is 15 percent of taxable income, plus a solidarity surcharge, resulting in an effective tax rate of 15.825 percent.

What social reforms are planned?

Chancellor Merz has announced fundamental reforms to the social security system. The coalition has agreed to establish commissions, but Merz emphasized: "This won't just be dealt with in a commission. We will implement very concrete reforms in the second half of 2025 to ensure our welfare state remains affordable.".

The CDU/CSU and SPD "struggled hard" with the pension formula. It is only fixed for the next six years. "After that, changes will be necessary," Merz emphasized. The coalition agreement includes the word "personal responsibility," and these systems will be restructured and made future-proof.

Merz also announced a fundamental reform of the citizen's income. The citizen's income is to be transformed into a basic income guarantee. "We are dealing here, in part, with mafia-like structures of social abuse. We will put a stop to that.".

How is the international community reacting to this initiative?

The initiative has garnered considerable international attention. Christian Sewing reported that investors from other countries were watching the initiative very closely: "They're saying to themselves: If German companies are prepared to invest these sums in their own country, then we are also prepared to do more.".

This pull effect is already evident in concrete figures. Sewing pointed to the development of the euro and the US dollar, as well as the capital flows that have entered European financial markets. "This shows that the pull effect is already taking place," he said.

Companies from abroad are also showing increased interest. "We are also seeing companies that are setting up their plants here because they want to diversify. Germany and Europe play an important role in this," Sewing explained.

What specific investment projects are planned?

The participating companies have already announced concrete flagship projects. Siemens is consistently implementing its investment offensive of over two billion euros announced for 2023, with one billion euros being invested in Germany. The Siemens Technology Campus for research on the industrial metaverse is being built in Erlangen, and Siemensstadt Square in Berlin is being realized as a global blueprint for urban development using digital technology.

Deutsche Bank is increasing its capacity in the area of ​​defense and infrastructure financing, as it anticipates a significant need for financing in the coming years. It is also promoting the further development of the growth capital market through its WIN initiative.

Other companies are also planning significant investments: Siemens Mobility is expanding its rail plant in Munich, and Saarstahl is investing billions in the climate-friendly conversion of its plant in Saarland.

How should the leverage effect of private investment work?

A particularly interesting aspect of the initiative is the planned leverage effect between public and private investments. Christian Sewing explained how the €500 billion special infrastructure fund could be multiplied.

The state could, for example, collaborate with KfW and private investors. "This could be done through instruments such as state guarantees, public-private partnerships, or other models where the state bears the initial losses in a joint project with private capital.".

When asked about specific figures, Sewing replied: “It depends on the details, but it is absolutely realistic to turn the 500 billion into 2,000 to 2,500 billion euros with additional private capital.” This leverage could significantly increase investment capacity.

What role does digitalization play?

Digitalization is a key component in addressing structural challenges. A study by the Vodafone Institute shows that increased digitalization could significantly alleviate the skills shortage. By 2035, 1.5 million missing workers could be compensated for through digital solutions.

In healthcare, the use of digital technologies could enable up to 9.9 million doctor visits per year that would otherwise fall victim to staff shortages. Artificial intelligence can help to recognize patterns and make fast and accurate diagnoses.

The German government plans to invest at least four billion euros annually from its special fund for digitalization. The goal is to make administrative processes almost entirely digital in the future, including standardized software solutions and AI-supported approval procedures.

How competitive is Germany?

Germany's competitiveness has suffered in recent years. Germany was once the world's leading exporter and long benefited from cheap energy from Russia and strong demand from China, explained economics professor Guido Bünstorf. Those days are over.

“We relied on an outdated model of prosperity for too long. At the same time, excessive bureaucracy and high taxes for businesses hampered Germany as a business location,” Bünstorf continued. Dependence on Russian gas was a strategic error, and shutting down nuclear power plants in the midst of the energy crisis exacerbated the situation.

Despite these challenges, Chancellor Merz sees Germany as one of the world's most attractive investment locations. The "Made for Germany" initiative is intended to send a strong signal to international companies to invest more heavily in Germany again.

What are the effects of US trade policy?

The US trade policy under President Donald Trump presents an additional challenge. The tariff increases on EU imports that have already come into effect are significantly impacting the German export sector. According to model calculations by the Ifo Institute, they will dampen German GDP growth by 0.1 percentage points in 2025 and by 0.3 percentage points in 2026.

The new US tariffs and the uncertainty about future US policy are dampening economic growth, especially as they are hitting German industry at a time when it was beginning to stabilize after a long period of weakness.

Regarding the trade dispute with the US, Merz remains hopeful that an agreement with Washington will be reached by the beginning of July. If not, the EU is prepared "with a range of options." He has the impression that Trump "also has an interest in further cooperation" with Europe and "especially with us in Germany" on economic issues.

In an era where a company's digital presence determines its success, the challenge lies in creating an authentic, personalized, and far-reaching presence. Xpert.Digital offers an innovative solution that positions itself as the intersection of an industry hub, a blog, and a brand ambassador. It combines the advantages of communication and sales channels in a single platform and enables publication in 18 different languages. Cooperation with partner portals and the ability to publish articles on Google News and a press distribution list with approximately 8,000 journalists and readers maximize the reach and visibility of the content. This represents a crucial factor in external sales and marketing (SMarketing).

More information here:

• Authentic. Individual. Global: The Xpert.Digital strategy for your company

How will the initiative be monitored and tracked?

An important question concerns the follow-up on the announced investments. When asked how to prevent the campaign from remaining merely a PR stunt, Christian Sewing replied: "We are not planning to send an auditor through the companies every four weeks to track this.".

Instead, the initiators are relying on trust: "We trust that the sums mentioned will not only be included in the investment plans, but will actually be invested." The most important measure, they say, is ultimately how well the location is strengthened through collaboration. "We are happy to take stock next year of what we have achieved.".

The companies have also identified flagship projects they can discuss publicly. This is intended to ensure transparency and underline the credibility of the initiative.

What significance does this initiative have for the labor market?

The German labor market is facing significant challenges. Unemployment is at its highest level in ten years. At the same time, many sectors are suffering from an acute shortage of skilled workers, particularly in IT, where it takes an average of 159 days to fill a vacancy.

The initiative could create new jobs and secure existing ones. The announced investments in research and development, digitalization, and infrastructure will generate skilled jobs. Continuing education for employees is particularly important to equip them for new challenges.

The German government is planning a reform of the Working Time Act that would allow for a weekly maximum working time instead of a daily one. "This isn't entirely easy for the Social Democrats and the trade unions," admitted Merz, but emphasized: "The goal is clear: We will implement it even without a reservation of collective bargaining agreements.".

How are the unions reacting?

The unions are observing the initiative with mixed feelings. While they generally welcome investments in Germany as a business location, they are skeptical of reforms that could be detrimental to employees.

The IG Metall union, for example, viewed Rheinmetall's potential interest in the VW plant in Osnabrück as proof of the site's future viability, but warned against abandoning the plant prematurely. "VW management must carefully consider whether it wants to do without this well-established and highly qualified team.".

Unions are showing reservations about the planned reform of the Working Time Act. Merz admitted that the planned changes are "not entirely easy" for the Social Democrats and unions, but clarified that the goals should be achieved even without a reservation of collective bargaining agreements.

What role do medium-sized companies play?

One criticism of the initiative is that it mainly involves large corporations. Jens Boysen-Hogrefe from the Kiel Institute for the World Economy criticized: "It is crucial that the government embraces this impetus and continues working towards improving the attractiveness of the location for investment. And especially for companies that are not currently involved.".

“However, the many small and medium-sized enterprises that are not at the table are important for Germany as a business location,” he added. This criticism highlights the importance of small and medium-sized enterprises for the German economy, which is often described as its backbone.

The German government is aware of this importance and is planning measures that will also benefit smaller companies. Reducing bureaucracy, providing tax relief, and improving the regulatory environment are intended to help all businesses, not just large corporations.

What is the international classification?

Germany is not alone in facing economic challenges, but the situation is particularly serious. While other European countries are experiencing better growth rates in some areas, Germany, as Europe's largest economy, is struggling with structural problems.

In this context, the “Made for Germany” initiative also sends a signal to European partners. Christian Sewing emphasized: “As an alliance of many leading companies, we want to work closely with policymakers to help put Germany, and therefore Europe, on a path to growth.”.

The initiative is being closely watched internationally. The fact that American companies like Nvidia and financial investors like BlackRock are also involved demonstrates the global interest in the German market.

What environmental and climate goals are being pursued?

A key aspect of the initiative is its focus on climate neutrality. The special fund is explicitly intended for "investments to achieve climate neutrality by 2045." €100 billion will flow directly into the Climate and Transformation Fund.

The planned investments include the expansion of renewable energies, the construction of reserve power plants, the connection of industrial centers to the hydrogen core network and the enabling of CCS/CCU technologies for emissions that are difficult to avoid.

Strategically important industries such as semiconductor manufacturing, battery production, hydrogen, and pharmaceuticals are to be established in Germany. E-mobility is to be promoted through purchase incentives in order to maintain the automotive industry as a leading sector.

What does this initiative mean for the future?

The “Made for Germany” initiative could indeed mark a turning point if the announced investments are realized and the political reforms take effect. The combination of private investment and government measures has the potential to address Germany’s structural problems.

The key will be whether it is possible to reduce bureaucratic hurdles, combat the skills shortage, and advance digitalization. The announced social reforms will show whether Germany can make its welfare state fit for the future without jeopardizing its competitiveness.

The international attention given to the initiative shows that Germany continues to be perceived as an attractive investment location. The challenge lies in justifying this trust through concrete actions and successfully implementing the structural reforms.

A historic turning point or a PR stunt?

The success of the "Made for Germany" initiative ultimately depends on whether the announced investments are actually made and the political reforms are successfully implemented. With €631 billion in investment commitments and a €500 billion special fund, these are dimensions that certainly have the potential to represent a turning point.

The criticism that this is a PR stunt is not unfounded, as some of the investments were already planned. Nevertheless, the initiators convincingly argue that even the confirmation of existing plans sends an important signal in the current economic climate.

A true assessment of the initiative will only be possible in the coming years, when it becomes clear whether the announced investments are realized and Germany's structural problems are successfully addressed. The foundation for a fresh start has been laid – now it's a matter of implementation.

History will show whether July 21, 2025, will go down in history as the beginning of a new era for Germany as a business location, or as yet another example of grand pronouncements without corresponding action. However, the signs certainly point to change, and the initiative could indeed be the catalyst for the urgently needed economic transformation.

This article was handwritten. I used my self-developed R&D research tool, 'XPaper,' which I primarily use for global business development in a total of 23 languages. Stylistic and grammatical refinements were made to make the text clearer and more fluid. Topic selection, drafting, and the collection of sources and materials are all handled by an editorial team.

XPaper News is based on AIS (Artificial Intelligence Search) and differs fundamentally from SEO technology. However, both approaches share the goal of making relevant information accessible to users – AIS on the search technology side and SEO on the content side.

Every night, XPaper sifts through the latest news from around the world with continuous, round-the-clock updates. Instead of investing thousands of euros monthly in cumbersome and generic tools, I've created my own tool to stay up-to-date in my work in Business Development (BD). The XPaper system is similar to tools used in the financial sector, which collect and analyze tens of millions of data points every hour. At the same time, XPaper isn't just for business development; it's also used in marketing and PR – whether as a source of inspiration for the content factory or for article research. The tool allows you to evaluate and analyze all sources worldwide. No matter what language the data source speaks, it's no problem for the AI. Various AI models are available for this purpose. The AI ​​analysis quickly and clearly generates summaries that show what's currently happening and where the latest trends lie – and XPaper offers this in 18 languages. XPaper allows for the analysis of independent subject areas – from general to specific niche topics, in which data can be compared and analyzed with past periods, among other things.

☑️ Our business language is English or German

☑️ NEW: Correspondence in your native language!

 

I and my team are happy to be available to you as your personal advisor.

You can contact me by filling out the contact form here wolfenstein@xpert.digital:or simply call me at +49 7348 4088 965. My email address is

I'm looking forward to our joint project.

 

 

☑️ SME support in strategy, consulting, planning and implementation

☑️ Creation or realignment of the digital strategy and digitization

☑️ Expansion and optimization of international sales processes

☑️ Global & Digital B2B trading platforms

☑️ Pioneer Business Development / Marketing / PR / Trade Fairs